MANILA -- Rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facilities (TDF) declined Wednesday, reminiscent of the auction of government-issued securities on Tuesday.
Data released by the central bank showed that average rate of the seven-day facility slipped to 4.6240 percent from 4.6278 during the auction last June 19.
Rate of the 14-day facility went down to 4.7002 percent from 4.7107 percent in the previous session.
Both facilities were oversubscribed this week.
Banks submitted a total of PHP14.41 billion worth of tenders for the shorter-tenor facility, higher than the PHP10 billion offer but lower than the PHP20.259 billion last week. The auction committee made a full award.
The lower bids this week resulted in the decline of the bid coverage ratio to 1.4410 from 2.0259 last week.
Also, the bid coverage ratio of the 14-day facility fell to 1.6997 from the previous auction’s 2.0585.
This transpired after bids reached PHP16.997 billion, higher than the PHP10 billion offer but lower than the PHP20.585 billion in the previous auction. The auction committee also made a full award for this tenor. (PNA)
